Arabtec Holding, Dubai’s largest publicly listed
construction firm, has been awarded an AED1.8bn (US$500m) contract to build a
77-storey mixed-use tower in the emirate’s central business district, it was announced
A statement to the Dubai Financial Market said that
its subsidiary Arabtec Construction would build the high-rise on Sheikh Zayed
Road in an area within the vicinity of Burj Khalifa, the world’s tallest
building and another Arabtec project. Arabtec said the development was due for
completion in May 2017.
The statement did not specify which company had
awarded the contract, although much of the surrounding area has been developed
by real estate giant Emaar Properties.
At a height of 369m, the building will be among the
top ten tallest towers in Dubai. The project will contain 22,000 square metres
of office space across 18 floors, a 908 sqm retail area, a 350-room luxury
hotel, 180 apartments and 83 serviced apartments. Negotiations are currently
ongoing regarding the hotel’s operator.
“This project is another sign of the recovery of
the property sector in the UAE and the Middle East and North Africa Region,”
commented Arabtec Holding CEO Hasan Abdullah Ismaik.
Other major work awarded to Arabtec includes a
$272m contract to build the Fairmont-branded hotel and apartments in Abu Dhabi
and a $652m deal to build a local brand of the Louvre museum, also in the UAE
capital. Arabtec has become increasingly active in Abu Dhabi after investment
fund Aabar Investments, which is based in the capital, became the company’s
Appetite among developers for major real estate
projects has returned this year amid a recovery in Dubai’s property market
after it collapsed in 2008 amid the global economic crisis.
According to real estate consultant Jones Lang
LaSalle, property prices in Dubai have risen by 22 percent this year, although
remain significantly behind their 2008 peak.
Renewed optimism among developers has seen the
re-launch of previously stalled projects such as Emaar’s The Lagoons and
Nakheel’s Deira Island, as well as new developments such as Mohammed bin Rashid
City, which will contain more than 100 hotels.
Damac Properties, another major developer based in
the emirate, announced last week plans to IPO on the London Stock Exchange in
what will be a litmus test for foreign investors’ faith in Dubai’s real estate